Weekly Oil Report: Recording a Decline For August as Demand Weakens

Oil closed August by about 5% decline. On Friday, Brent closed at $76.99 and WTI closed at $73.59. Watch crude oil technical analysis:

On 4h chart of Brent, you see a triangle forming the apex and the price is getting closer to the lower line. Considering the volume and RSI, price can get lower to touch the support. 

Last week, on Monday, prices rose due to increasing geopolitical tensions. 

• Israel and Lebanon had a big missile exchange. 
• Russia targeted Ukrainian energy infrastructure in Missile and Drone Attacks. 
• Libya’s government is closing down oilfields and exports because of rising tensions in the country.

The supply shock managed to raise the price for a couple of days, but the market eventually refocused on China’s demand. Big economies are not showing promising signs and this frightens the market. Promised US September cut is also one of the prominent events of this month. 

As oil was confused, bitumen markets moved in different directions. East Asia had some growth while Europe had a decline. India decreased rates by $8. Despite VB decline in Iran, overall price movement was positive due to GRI and refineries competition. 

Feel free to contact me for any bitumen inquiries. You can also check an estimate of price for your required destination port here.

By Mahnaz Golmohammadian, the international sales expert of Infinity Galaxy (www.infinitygalaxy.org).